Issue link: https://maltatoday.uberflip.com/i/1162446
6 DAVID HUDSON MALTA will register its fourth budgetary surplus in 2019, finance minister Edward Sci- cluna said, despite a €15 mil- lion deficit in the first quarter of the year. "The race goes on until the end. This happens every year — sometimes it's over, sometimes it's under — but one can always do corrections. We don't have indications as of yet, as it is currently on a cash flow basis. One has to see the figures on an accrual basis. That's why our ministry exists, to keep con- trolling to reach the targets. I am confident that we will keep heading down this road and that the surplus will materialise at the end of the year," Scicluna told MaltaToday. Speaking at pre-budget busi- ness breakfast at Casino Mal- tese in Valletta, Scicluna said that the theme of this year's pre-budget document was 'Sustaining Inclusive Growth'. "If I were to choose another title, it would be 'managing success', because we have ob- tained success compared to our past record and to our EU peers. It feels now that if we don't handle it well, it will be the beginning of the end," he said, adding that Malta's car- rying capacity was not elastic but with careful planning, the growing economy would not put increased pressures on other sectors like construction and housing. During the first quarter of 2019, the Maltese economy grew by 4.9%, in real terms, over the corresponding period of last year. The largest growth in Gross Value Added was registered at 12% in the construction sec- tor. The highest growth that followed was in the profes- sional, scientific, technical, admin and support services (10.8%) and real estate activi- ties (10.8%). Unemployment data cover- ing the first three months of this year shows that Malta re- corded one of the lowest total unemployment rates among EU member states at 3.5%. Employment prospects are to remain favourable. Harmonised Index of Con- sumer Prices inflation record- ed a steady increase in the fist five months of 2019 at 1.7% but still below the 2% EU thresh- old. As at the end of 2018, Malta held around €247.9 billion in assets and €241.1 billion in li- abilities. Scicluna said that financial prospects in the world and in Europe were facing new threats. "What was predicted to hap- pen is happening: worst-case scenarios in terms of trade wars, Brexit and populism. A very in- fluential country, the USA, has decided to put up tariffs, not just with its competitor, China, but with its neighbours, Cana- da and Mexico. The threats of putting up tariffs for Europe are there," he said, adding that Eu- rope was now facing pressure to prioritise green finance and climate change. He announced that the fe- male participation rate in the labour market is continuing to rise and that Malta has finally exceeded the EU28 average, describing this as "very good news." The at-risk-of-poverty scale has also declined and it has declined more than EU28 av- erage. There are still 19% of families at risk of poverty. Other data Malta's volume of export in goods and services as a per- centage of the global world trade, on the manufacturing side, declined marginally but Malta has made up for it via a higher global export market share in its services. Scicluna announced that the reduction in income tax rates from 35% to 25% affected 50,000 beneficiaries. Free childcare is being en- joyed by 15,800 children and 21,000 parents. Tax reductions on pensions affected 22,000 pensioners. Free transport to school chil- dren benefitted 28,000 stu- dents. Malta lost around €60 million in revenue over the first-time buyers scheme — 19,326 ben- efitted from this scheme which was launched 7 years ago. 28,218 individuals saved €88 million in taxes, Scicluna said. Malta's life expectancy is also amongst the top ten coun- tries with the highest life ex- pectancy. The same goes for gender pay gap, placing Malta amongst the first 8 countries with the lowest gender pay gap. maltatoday | WEDNESDAY • 4 SEPTEMBER 2019 ANALYSIS STOCK TAL-GVERN MALTA GOVERNMENT STOCK Secure Investment Issue of €50,000,000 by Auction Fixed Rate Malta Government Stock (subject to the over-allotment option up to a maximum amount of €30,000,000) Fixed Rate Malta Government Stock The Treasury shall be issuing by auction €50,000,000 Fixed Rate Malta Government Stocks subject to an over-allotment option to increase the sum to be raised up to a maximum additional amount of €30,000,000 as follows: (i) 0.5% Malta Government Stock (Second Issue) – Fungibility Issue Maturing in 2025, and (ii) 1.85% Malta Government Stock (Third Issue) – Fungibility Issue Maturing in 2029, or (iii) Any combination of the above two Stocks which in the aggregate shall be €50,000,000 Applications in the form of sealed bids (competitive auction) for a minimum of €500,000 and multiples of €100,000 each open on Friday 6 th September 2019 at 8.30a.m. and close at noon of the same day or earlier at the discretion of the Accountant General. Bids on the prescribed forms are to be transmitted by e-mail at the e-mail addresses indicated on the application form or by fax on 2596 7210 or deposited in the Treasury Tender Box in Floriana. Application forms may be obtained from all Members of the Malta Stock Exchange and other authorized Investment Service Providers or downloaded from the Treasury's website at www.treasury.gov.mt. MALTA GOVERNMENT STOCK FOR SAFE INVESTMENT AND LIQUIDITY WITH INTEREST PAID UP TO THE DAY OF RE-SALE OF STOCK SECURITY CONTINUOUS LIQUIDITY INTEREST EVERY SIX MONTHS (The value of the investment may go up or down during the tenor of the Stock) Treasury Department, Development House, Level 2-3, St. Anne Street, Floriana, Malta. Malta to get fourth consecutive surplus in 2019, Scicluna says Pre-Budget meeting with stakeholders: Edward Scicluna says Malta 'must handle well its success or it will be the beginning of the end'